In this question Portfolio duration calculation needs Coupon rates and market price, so that we can calculate Macaulay duration. And multiplying Macaulay duration of the bond with respected weights of the bonds gives desired result.
But with the given information, Portfolio Duration will be = 0.25*5years + 0.75*10years = 8.75 years.
Hence, duration of the given portfolio will be = 8.75 years
u les al depository institutions? m A) A credit union B) A savings and loan association...
1. T 20) Which of the following financial intermediaries are depository institutions? A) A credit union B) A savings and loan association O A commercial bank D) All of the above E) Only A and C of the above SHORT ANSWER. Write your answer in the space provided or on a separate sheet of paper. 21) A manager holds a portfolio that is invested 25% in a bond with 5-year duration and 75% in a bond with 10-year duration. What...
1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back. 2. Since 2008, when the monetary base was about $800 billion,...